On the Monetary Authority of Singapore’s (MAS) $5 billion equity market development programme (EQDP), the team sees that the inflow could greatly benefit quality mid-cap stocks and stocks with upside potential from asset recycling.
The equity macro research team at JP Morgan (JPM), Khoi Vu, Rajiv Batra, Mervin Song, Terence M Khi and Harsh Wardhan Modi, finds that Singapore-focused REITs or stocks with resilient cashflows and leveraged balance sheets stand to gain from declining interest rates.
The team writes in their June 15 report: “While banks will bear the brunt of lower interest rates, we believe the sector could still be supported by resilient yields and strong inflows from domestic funds subscriptions.”
